Chip Eng Seng - Update

Chip Eng Seng failed to break the resistance on 0.895 a few months earlier and resulted in failed rally. Failed rally tends to fail quickly and it quickly dropped to below 0.50 within 2-3 months aided (no thanks) by the overall market collapse. I failed to sell of at 0.87 and resulted in heavy loses. That was during a period when I was too busy with my consulting job and did not monitor the market for a few months.

I finally sold off at 0.59 to cut loss and I bought into ComfortDelgro at 1.595 on average for long term investment and dividend play. ComfortDelgro is trading near its 3-year low of about 1.40. I believe 1.40 will be a very strong support for ComfortDelgro. For long term dividend play, going in at 1.60 is still viable since the dividend is around 3-4% on average.

Chart Patterns 1 - Symmetrical Triangle

Symmetrical triangles tends to resolve to the primary trend.

Currently, DOW, NASDAQ & S&P are forming symmetrical triangle. Looking at the primary trend, it points to a general down trend for daily charts, weekly charts. So, we can generalize that the tendency is for market to move lower in the short term.

There has been a inverted head and shoulders patterns for the intra-day charts but they failed to form and these will lead to further break downs.

Similar pattern is spotted on the STI. Daily and weekly charts showing primary trend is moving down. So, it is expected that the short term rally will tend to fail and resolve back into down trend.